The Pensions Regulator has issued a statement on current market conditions. It has reviewed its codes of practice and guidance and come to the view that no changes are required at present and that the codes are "fit for purpose".

The two main areas covered by the statement are scheme funding in defined benefit schemes and member communications in defined contribution schemes.

In relation to scheme funding trustees should be following the current code and keeping matters under review. For future valuations the Regulator would expect larger deficits and weaker employer covenants to lead to higher technical provisions. This in turn could mean that recovery plans have longer recovery periods. There is no immediate plan to change the "triggers" on scheme funding which would lead to Regulator intervention, but this will be kept under review.

In relation to defined contribution schemes trustees should be giving careful consideration to member communication - this may include suggesting members nearing retirement take independent advice (for example from TPAS) and reminding members to keep their investment choices under review (especially those in lifestyle funds).